Tuesday, August 5, 2008

Japan: A Techno Wonderland or Wasteland?


A few months ago while attempting to further acclimate myself with Japan in terms of definable business opportunities, I stumbled across a book entitled "Saying Yes to Japan: How Outsiders are Reviving a Trillion Dollar Services Industry by Tim Clark and Carl Kay". The book as the title suggests examines the service industry here in Japan along the lines of four key industries namely finance, real estate, information technology and health care services and how there is a distinct gap between the level of service offered and what is truly needed to create real value.

One of the key points articulated by Clark and Kay is that the low end services here in Japan are handled quite well compared to the west--as evidenced by the extraordinary service one encounters in a trip to the local 7-11 or MacDonald`s. However, that level of service sharply drops once the higher end servicing opportunities appear. The reason I bring this up is that in starting this blog on mobile CRM and the various CRM software applications and tools being developed worldwide, I am still seeing a distinct gap in what is available in terms of raw technological capabilities and what is currently being offered or even used within the Japanese workplace.


Japan at first glance is certainly a techno wonderland--a coin phrased by the authors of Saying Yes to Japan--in that the level of sophistication relating to technology is quite high. In particular, the technology being utilized to navigate through one`s daily life is highly developed here in Japan versus the west. From buying a Coke with your keitai (mobile phone), to watching your favorite television program, to even programming your rice cooker the examples of keitai based technological savvy are everywhere.
Things get interesting however when one turns their attention to the workplace where this wondrous blend of machinery and human skill is suddenly lost. The dazzling array of technology which pervades one`s daily life outside work suddenly disappears. In visiting local governments, one is stunned by the acute lack of fundamentally deliverable services that are either non-existent or painfully outdated. The amount of paper work one is subjected to for just about any request is extraordinary. Or looking at residential neighborhoods--which are still very connected versus that of western culture standards--and how communications are primarily via a head community centre which circulates a clipboard with the latest news, notices and event information. Visiting a local bank and noticing the fairly recent push of Internet banking capabilities as a relatively new customer enticement service seems a bit behind the times too considering Japan' reputation as a technological leader worldwide.
These points are but a few which illustrate a point driven home by Clark, Kay and countless others. Japan in some regards could certainly be looked upon as a bit of a wasteland technologically speaking. Services utilizing information technology within the workplace aimed at improving either productivity or service support are at levels which are not sufficient considering Japan`s capabilities.


Now, relating these notions to mobile CRM tools, applications and software and statistics as shown in one of our first blogs, one can see that this particular technology offers an outlet for improving or enhancing mobile customer relationships. The applications which are currently developed or are in use within B2B--business to business applications--or B2C--business to consumer applications--pale in comparison to what they could be.


Why is this? Possible explanations include the technology racing too fast for the culture to keep pace. With most large board room executives in Japan being in their latter years and the rate at which this technological is occurring, could it be too much for them to digest and apply all at once? Is the technology itself too forward thinking for even the hyper-connected and technologically savvy Japanese to apply instantly? Both explanations seem plausible, but I am sure the reasons aren't so simple or clear cut. I believe that it is probably a combination of a number of factors such as the above, along with others relating to IT infrastructure not being fully developed or proven to the degree in which companies are willing and comfortable to outlay large expenditures on it just yet. So many questions, but no simple answers.

So, is Japan a techno wonderland or wasteland? Well, it all depends how you further define that question and what the next five to ten years say. What is clear however, is that there are opportunities and that understanding what they could be is the first step in poising oneself to capitalize on them.

Canadian Chris


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